All Forum Posts by: Dan Miller

I want to do a voiceblast to a bunch of "for rent" ads. I wrote up a short 30-second script that I think is decent, but I'd love to see if others have scripts or mktg letters that they'd be willing to share so that I can see some of the key selling points. I think mainly, the selling points are:

1) tired of fixing toilets
2) tired of tenants not paying
3) tired of tenants wrecking your property
4) having to pay the mortgage when the rental unit sits vacant

Let me know.

Thanks.

I was thinking about two possible offers on this property (all of course contingent upon a suitable inspection and more firm estimate on rehab costs).

1) offer cash of about $100 (which probably won't be acceptable to the sellers. This would be based on 65% of ARV ($375k) - 125k in repairs - 10% fluff in repairs which is another 12.5k - assignment fee of 10k or so. Sellers have 130k in debts to pay off (not mortgage debt though), so they probably won't agree to this.

2) Alternatively, I could purchase a 60-90 option for $10 to buy the property at a more retail "as is" price (say $175-185 or so) and then market it to owner occupants who want to fix it up for $200 or $210. If I find a buyer, I can make $20k or so, and if I don't, then I lose my $10.

What do you think?

Thanks for the responses.

I met with the homeowner yesterday and walked the home, although I couldn't get my contractor to come out, so it was just my inexperienced eye. What I realized though is that this house needs a lot of work to bring it up to 2008 standards. It's 100 years old and looks it. It likely would need new electrical system and updated heating system. It has no AC, so it would need that. Add on top of that a full cosmetic rehab, and who know if there is any structural needs or not. I'd say rehab costs are more like $125k now as a rough estimate.

Rehabbed homes in the area have sold in the mid to upper 300s, so 350 ARV is a reasonable estimate. It could probably sell for $375. The area is slow right now though as it's a less established neigbhorhood in DC, but on the up and coming.

I would be looking to wholesale this, but think I couldn't really offer more than about $125k or so.

Unfortunately, there are no homes in the DC metro area that are sub-100k. The least expensive ARVs in the DC metro area are in the mid to high 100s (Townhomes). SFHs start around the 225 to 250k range in this area of the country.

Thanks to both of you for your views. That's what I was starting to realize. Short sale would be the only option. I've never done a short sale before, so perhaps I could wholesale such a deal or birddog to a more experienced investor.

I'm quickly learning that I have to keep my emotions out of it. I feel badly for the woman and I want to help her, but outside of a short sale, which I've never done, there's not much I can do.

This is another call from one of my bandit signs in Washington, DC. It's an estate sale.

1905 rowhome, 3BR/1.5BA.
Owned free and clear
ARV: probably about $350-375
Repairs needed: uncertain, but lived in for 50 years, so probably needs significant updating (let's assume $50k)
Asking price: $235k
Area rents: about $2000

Really not sure what to do here. Please advise.

Thanks,
Dan

I got a call today from one of my bandit signs. Here are the #'s. Tell me what you would do please. I'm a newbie and feeling overwelmed and scared:

Owner is in preforeclosure and 5 payments behind. She has about 15 days to the auction.

Estimated home value (unverified): $400k
Mortgage amount: $349k. It's a 5-year ARM that is fixed for 3 more years.
Arrears: about $10k
Monthly PITI: $2,371
Avg. rents in the area: $1800-2000
Willing to sell for what she owes.

Relatively new SFH, 5BR,3.5BA needing know work at all. In great shape.

Please help. I don't think there's enough equity here to do much since I can't do a cash deal, and the rents won't cover the mortgage payments. Please advise.

Thanks,
dan

I actually disagree with the idea of being "unique" on the bandit signs. I disagree for 2 reasons:

1) the "we buy houses" signs are proven winners. They are concise, clearly state how you can help, and call the consumer to action. If it ain't broke, don't fix it. They generate leads.

2) they are in the open and visible. You don't need to get people to catch your sign over others like you do with mail or even email which is all mixed together. With a bandit sign, the critical elements are that it's concise (can be read quickly), is viewable and readable (i.e. big sign by slow-moving/stopped traffic); and is eye-catching (think colors here: yellow background w/ black letters ALWAYS catches my eye when driving whereas white sign don't necessarily do so).

Where unique becomes critical is in direct mail. With direct mail, everything does look the same, and you need to do something different to get people to OPEN the mail. Get them to open it, and they will likely at least peruse the letter. With a bandit sign, it's already "opened" so to speak, so you don't need to really differentiate as much.

I have a limited budget so I want to be very targeted with any direct mail I do. Where can I efficiently get a mailing list? For example, if I want to market to tired landlords in a certain area, I've heard go to the courthouse . However, with a full-time job, I usually can't get there on weekdsays.

How do you all compile your list of pre-foreclosures? tired landlords? divorcees? estate sales? etc.

Thanks!

MIke,

I am implementing a similar strategy with the bandit signs targeting the same types of neighborhoods seeking lease options. I have not had any experience with this yet, but my mentor is an expert in this area. He has told me that two good ways are to put a classified ad in the paper (and/or craigslist) and say "Rent to own, low downpayment" or "no bank qualifying, rent to own" or something like that. Key points are a) no bank qualifying (lease optionees usally have some money but damaged credit); b) low down (not a typical house downpayment of 10-20%); c) they can become homeowners.

Hope that helps. Let me know if it works.

Dan

Would you recommend buying metal stakes or getting the cheaper wood stakes (from a Home Depot or Lowes)? Which holds up better outside? I know the wood is less expensive.